3 Reliable Income Generators to Buy in July

Industry
โดย 24/7 Wall St.·Read original
Summary · why it matters

With the Federal Reserve's benchmark rate at 3.75% and the 10-year Treasury yielding 4.38%, income investors are turning to business development companies for higher yields. Ares Capital trades at a discount to its net asset value of $19.59 with a covered $0.48 quarterly dividend, though it recorded $412 million in net unrealized losses and a slight uptick in non-accruals. Main Street Capital has never cut its dividend since its 2007 IPO, paying a monthly base of $0.26 plus a $0.30 supplemental, but revenue fell 18% year over year. Trinity Capital offers the highest portfolio yield at 16% and has rallied over 25% in the past year, yet venture lending carries higher credit risk and net realized losses reached $9.9 million. Rising non-accruals and falling net asset values remain the key threats that could force dividend cuts across these names.

Impact on stocks 3

Financials · 3 stocks
Ares Capital Corporation
ARCC
▼ NegativeCapitalrelevance

Recorded $412 million in net unrealized losses and a slight uptick in non-accruals, threatening dividend sustainability.

Trinity Capital Inc.
TRIN
▼ NegativeCapitalrelevance

Net realized losses reached $9.9 million and venture lending carries higher credit risk, posing dividend cut risk.